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Posted Anonymously |
Make the medicare levy meaningful
Feb 26 2008, 8:42 AM EST
Either abolish the medicare levy or else increase it to around 9% (with a comparable reduction in general income tax) so that it reflects the real cost of health care. The current rate does not reflect the true level of expenditure on health care and it is misleading.
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Posted Anonymously |
1. RE: Make the medicare levy meaningful
Apr 19 2008, 8:08 AM EDT
Medicare is just another expense paid for out of Consolidated Revenue. (The experts can tell me if I am wrong.)Abolish it and adjust the income tax scales, eg add 1-2% to all rates and make tax or other adjustments to allow for the following issues. There are numerous low income thresholds for different groups. Some people do not have to pay the levy, eg defence services personnel. The levy is paid after other offsets and adjustments have been applied. This means some people pay no tax except for the levy. This would reduce some administative costs all round and remove the additional marginal rate of tax when the levy is tapered in at the various low income thresholds. This is one of several possible income tax reforms that Peter Costello did not tackle for whatever reason I don't know. Will Wayne Swan be any better? Maybe I have to wait for Malcolm Turnbull. 1 out of 1 found this valuable. Do you? |